Setting the Context
The Caribbean is a distinctive socioeconomic order determined by experiences of a historical formation rooted in colonialism and the plantation system, and all the consequences manifested in social stratification, cultural contradictions, and endemic economic limitations. As a result, the persistence of “plantation variables” is a fact, and the economies of the region eventually evolved typically into monocrop production, which is mostly foreign-owned and export-oriented. Later on, since the 1960s, emphasis on crops such as sugar, coffee, and bananas has been replaced by an excessive emphasis on tourism, which has been heralded as the road to modernity and prosperity.
Recently, even though Caribbean countries are signatories to a wide variety of Conventions and international agreements, economies and societies in the region, and all over the world, are grappling with the challenges of globalization and the tyranny of financialization: the astonishing pace of technological innovation, widening poverty gaps, food shortages, climate change, rising energy costs, environmental problems, global financial crises, and vexing social ills such as unemployment and underemployment, rising criminality, health and educational challenges, and the like.
Theoretically, debates concerning “holistic development” (a “holistic” approach utilizes four pillars of sustainability: social, cultural, environmental, and economic) and globalization reveal sharply different views of the new world order. Proponents of current forms of globalization (generally termed “neoliberal” or “corporate”) tend to speak in very positive terms, making bold promises about the future. They contend that policies of freer trade and minimally regulated markets will result in high levels of economic growth throughout the world. This growth will in turn lead to broad improvement in living conditions as “a rising tide lifts all boats.”
From a neoliberal perspective, globalization is an economically driven process that should proceed on first principles of private property and unrestricted market forces. Regulation should have as its primary—if not sole—function to facilitate and protect private ownership and the “free” operation of supply and demand among producers and consumers. Other economic rules and institutions are “political interferences” that undermine market efficiency and, therefore, should be reduced to a minimum. With a combination of privatization, liberalization and deregulation, globalization should bring maximum prosperity, liberty, democracy, and peace to the whole of humankind.
Neoliberal doctrine has exerted a powerful hold on governing circles during the past quarter-century of accelerated globalization. Faith in free market outcomes has formed the core of the so-called Washington consensus on economic policies (Williamson, Latin American Adjustment: How Much Has Happened?, 1990). The early 1990s was even a period for its champions to announce “the end of history” and that “there is no alternative” –no other model but capitalism and liberal democracy seemed possible (Fukuyama, The End of History and the Last Man, 1992). In reality, however, only a few select indicators like those related to cross-border trade, direct investment, and permanent migration support the claim that recent growth in world relations is a rerun of earlier history (UNCTAD various reports; UNRISD various papers).
Yet, different critics of current forms of globalization see it differently. They draw attention to links between past and present global economic realities and policies, and point out negative consequences such as vexing levels of inequality, rising debts and debt crises, widespread hunger and poverty, the massive displacement of small farmers and disappearance of small businesses, sweatshop working conditions, the breakdown of community, increased social conflicts, and several ecological crises. According to radical arguments (e.g., David Harvey, William Tabb, and Robert Went, among others), current policies need to be viewed in the context of the overall history and dynamics of the world capitalist system.1
The goal of neoliberal policies is to accelerate capital accumulation, with all the side effects of exploitation, concentration of wealth, inequality, and other negative features that this process typically entails. For example, Went (2000: 6), argues that policies of neoliberal globalization are leading to
a more and more pervasive dictatorship of the market [system]; to greater social inequality as the result of a dual polarization process, both within countries and on a world scale among different countries; to progressive leveling down of wages, working conditions, and social security; to extensive migratory flows; to life-threatening ecological deterioration and destruction; to a greater role for unaccountable international institutions and regional entities; and to further whittling-away of democracy.
Besides, grassroots critics express a much deeper appreciation of ecology, and local cultures and values.2
Evidently, globalization has already impacted the economies and societies of the Caribbean: exacerbation of economic instability, rising current account and fiscal deficits alongside high debt obligations, a slowdown in productivity growth, limited adjustment in traditional sectors, high unemployment and underemployment, the reduction and deterioration in public services, the degradation of the environment and natural resources, increasing social problems including crime and violence, the growing distance between rich and poor, and unfair competition arrangements which put Caribbean nations in a situation of ever increasing inferiority. Besides, the nature of the current financial integration of Caribbean countries has created new forms of external vulnerability. As the effects of globalization will more likely intensify, and given its complexity and its potentially disruptive power together with its opportunities, there is clearly an urgent need to understand it, to take advantage of whatever benefits it offers, and to minimize potentially negative outcomes.
The Caribbean has also several strengths as regards globalization: the region is democratic; adheres to a system of laws; has embraced economic liberalism, particularly since the beginning of the 1990s; has a relatively high level of education compared with other less-developed countries; and is mostly English-speaking and geographically close to the USA, the largest single market in the world (UN, Global E-Government Readiness Report, 2004). Consequently, the question that arises is: what are realistic development options for Caribbean territories given the policy space available to their national institutions at present?
Clearly, a positive, realistic, and forward-looking stance will not be possible without a good understanding of this new world order which is shaping, and will continue to shape the contemporary Caribbean and the rest of the world. In this era of neoliberal globalization and financialization, however, we would find that there has been little of worth contributed to the concrete task of working out thorough strategies and consistent policies (i.e., an effective local response) for coping with these socioeconomic problems in the Caribbean. Indeed, it is vexing how little attention has been paid to developing rational strategies and pragmatic policies aimed at providing a planning frame to deal with the multidimensional problems of the region.
The multidisciplinary edited book The Modern Caribbean Economy consists of two volumes. The first volume appears with the subtitle Alternative Perspectives and Policy Implications, and the second with the subtitle Economic Development and Public Policy Challenges. Both volumes provide much-needed alternative theoretical notions and offer concrete policy recommendations to national and regional institutions as well as the local business community while engaging scholars, policy makers, professionals, students, and all persons interested in the burning issues associated with these themes. This thorough information is what Caribbean policy makers actually need.
The Structure of Volume I
The edited volume The Modern Caribbean Economy: Alternative Perspectives and Policy Implications discusses alternative theoretical views and holistic development-promoting policy considerations aimed at advancing the region’s local economies while taking into consideration the impact of globalization and the current crisis. With important contributions by distinguished academics, the manuscript evaluates past efforts and policies, criticizes failed perspectives, and offers alternative strategies, policies, and realistic options to the region’s current socio-economic impasse and misery from a distinctly Caribbean viewpoint. Although different areas of concern are addressed, the chapters are informed, to a greater or lesser extent, by such important factors as historical legacy, the role of institutions (including market and government), geopolitics and the international environment, local culture and social psychology, which stand in contrast to the starry-eyed analysis of the current orthodoxy. Overall, the contributions to this edited book not only expand the body of knowledge but, more importantly, provide a rich menu for alternative strategies and policies related to Caribbean endogenous development aspects in the twenty-first century.
Volume I consists of four chapters. Considering that this era of neoliberal globalization and financialization challenges old-fashioned areas of intellectual concern to discovery, explanation and theory, these chapters lay special emphasis on alternative theoretical views aimed at a better understanding of the nature of modern economic realities in the region. They include important analyses such as the possible influence of Canadian staples theory on the Caribbean political economy, main notions of a distinctively Caribbean egalitarian developmentalist framework, modern government capacity requirements, and challenges to improving Caribbean educational systems.
In the opening chapter, Madjd-Sadjadi argues that the plantation economy literature is an outgrowth of Canadian “staples theory” with new packaging, which was married to the existing work of Arthur Lewis. Therefore, according to the author, Canadian political economic insight ought to be included in the history of the development of the Caribbean plantation economy literature. In chapter 2, Karagiannis and Polychroniou describe the historic impact of colonialism on the Caribbean development, cautiously make the case for centralized political involvement in industrial expansion in the era of neoliberal globalization, and propose essential themes and notions towards framing an alternative egalitarian development paradigm for the region. Chapter 3 by Minto-Coy and Berman assesses the past performance of the public sector in the Caribbean context. Taking into consideration vexing challenges, modern demands, and expectations associated with the region’s developing states, the authors specify key areas for improving and strengthening their capacity for governance. Finally, in chapter 4, Pearson claims that Caribbean systems of education experience some of the same challenges as many of its global neighbors. The author advocates for critical theory approaches to quality school leadership, which can effectively address these multidimensional challenges.
Our task would have been incomplete if we had not acknowledged those who kindly aided us in completing this edited volume. We thank the distinguished contributors for their willingness to participate and respond to our suggestions, and the advisors and staff of the Business Expert Press who have provided excellent support throughout the preparation of this manuscript. We would also like to thank the editorial offices of Truthout and Social and Economic Studies (SES) for kindly permitting revised paragraphs of the paper “Boosting the Industrial Competency and Market Development of Caribbean Firms: The Challenge of the Developmental State Approach” (first published in SES vol. 62: 1&2, June 2013) to appear in the second chapter of this book. Last, but not the least, we would like to thank our families for their continuous encouragement and support, and our colleagues and students for the inducements. We owe them more than we can recount.
Nikolaos Karagiannis Debbie A. Mohammed
Winston-Salem, North Carolina, USA
and St. Augustine, Trinidad & Tobago
January 2016
Notes
1. See: Robert Went (2000), Globalization: Neoliberal Challenges, Radical Responses (London: Pluto); William Tabb (2001), The Amoral Elephant: Globalization and the Struggle for Social Justice in the Twenty-First Century (New York: Monthly Review Press).
2. These categories of radical and grassroots critics are not mutually exclusive as some critics could appropriately be placed in both categories.